2018/04/22/(Sun)

Panalpina improves profitability [Forwarder]

In the first three months of 2018, international freight forwarding and logistics company Panalpina improved profitability compared to the same period of last year. Panalpina reported an EBIT of CHF 24.4 million (YTD 2017: CHF 16.4 million) and a consolidated profit of CHF 16.6 million (YTD 2017: CHF 12.4 million).

“We’ve had an encouraging start into 2018. Profitability per transported unit increased in both Air and Ocean Freight,” says Panalpina CEO Stefan Karlen. “In Ocean Freight we still recorded a loss, but it has come down from the last quarter of 2017. Logistics contributed to the good overall performance with a solid EBIT result.”

In the first quarter of 2018, Panalpina’s gross profit increased 11% to CHF 370.7 million (YTD 2017: CHF 332.7 million), while total operating expenses stayed flat at CHF 306.3 million (YTD 2017: CHF 305.7 million). EBIT and consolidated profit increased year-on-year by 49% and 34% respectively. EBIT reached CHF 24.4 million compared to CHF 16.4 million a year before and the EBIT-to-gross-profit margin stood at 6.6%, up from 4.9% in 2017. The consolidated profit increased from CHF 12.4 million to CHF 16.6 million.

Air Freight

Panalpina’s Air Freight volumes increased 3% in the first quarter of 2018. Compared to the same period of last year, gross profit per ton increased 19% to CHF 739 (YTD 2017: 620), while overall gross profit increased to CHF 177.8 million (YTD 2017: CHF 144.7 million). EBIT in Air Freight increased from CHF 17.1 million to CHF 26.9 million. The EBIT-to-gross-profit margin came in at 15.1% compared to 11.8% a year before.

Ocean Freight

Panalpina’s Ocean Freight volumes decreased 4% year-on-year, mainly as the result of a discontinued high-volume contract, while gross profit per TEU increased 7% to CHF 303 (YTD 2017: CHF 282), bringing gross profit to CHF 108.9 million (YTD 2017: CHF 105.5 million). For the first quarter of 2018, Ocean Freight recorded an EBIT loss of CHF 5.8 million, compared to a loss of CHF 3.2 million a year before.

Logistics

In Logistics, gross profit increased 2% to CHF 84.0 million year-on-year (YTD 2017: CHF 82.5 million). EBIT reached CHF 3.4 million for the first three months of 2018, compared to CHF 2.4 million for the same period of last year.

Outlook

“Global air freight demand continues to be healthy and the carriers have begun to increase rates substantially. We will have to be very disciplined in passing these rate increases on as we head for a summer season that could be busier than usual again,” says Karlen. “In Ocean Freight, our immediate focus is clearly on improving profitability. In Logistics, we have made important investments that put us in a good position for top-line growth during the rest of the year.”

DHL Global Trade Barometer increases [Integrator]

The positive outlook for world trade has continued to improve. The DHL Global Trade Barometer increased to 66 points in March from 64 points in January when the newly created index was initially published. With an index value clearly above 50, the DHL Global Trade Barometer continues to signal solid positive growth for global trade within the next three months. Furthermore, the increase indicates that growth is gaining momentum.

The overall good prospects are also reflected in the fact that the Trade Barometer points to an increase in trade activity for each of the seven constituent countries. Compared to the findings in January, the improved global index is mainly driven by an increasingly positive outlook for Korean and US trade. In contrast, the prospects for German trade eased after the strong peak seen in 2017. India continues to show the highest index value of all seven countries for the overall trade predictions, while the UK, after a modest decline since January, scores the same level as China at the lower end of the country ranking.

Index developments are slightly contrastingDevelopments in air and ocean trade are slightly contrasting. The global air trade outlook drops slightly by -1 point compared to January, but remains very positive at 70. The outlook for global air trade is pushed downward, as particularly German and South Korean air trade growth is expected to slow down. On the upside, air trade growth in China and the US is expected to accelerate.

Meanwhile, the outlook for global ocean trade improved to 63 points in March from 60 points in January. This growth is also driven by the US and China, together with a strong increase in South Korea, offsetting a slightly reduced growth outlook for UK and German ocean trade.

Big amounts of data are evaluated with the help of artificial intelligence Launched in January 2018, the DHL Global Trade Barometer is a new and unique early indicator for the current state and future development of global trade. It is based on large amounts of logistics data that are evaluated with the help of artificial intelligence. The indicator has been developed in cooperation between DHL, the world's leading logistics company, and IT service provider Accenture. It is published four times a year. The next release date is June 27, 2018.

2018/04/14/(Sat)

Panalpina World Remanufacturing Day: celebrating the commercial and environmental benefits of the circular economy [Forwarder]

If rockets can be reused, then a lot of other things should be too! SpaceX became the first company to launch a resupply mission to the International Space Station on a reused rocket. (Photo by SpaceX)Today is World Remanufacturing Day! “Remanufacturing is only one part of the after-market solutions that we provide at Panalpina, but it is a very important part and it looks set to become even more important for our customers in the future,” says Mike Wilson, global head of Logistics and Manufacturing at Panalpina. Remanufacturing and the circular economy, something Panalpina has talked about before, go hand in hand.

In the past, supply chains have grown longer with the trend for manufacturing companies to move production to low cost geographies far from customer demand.

However, these elongated “take-make-dispose” supply chains that have been successful for many years are rapidly losing relevance in light of the transition to shorter, circular supply chains. The world is already seeing a shift away from centrally manufactured products which are shipped through a global transport network and sold once, to more localized manufacturing with products returning and being resold multiple times through their lifecycle.

Commercial opportunities

This shift towards the circular economy is being driven by manufacturers and retailers who see the enormous commercial opportunities in the after-market supply chain, which includes product upgrade services, spare parts sales, product repair, remanufacturing and brokerage opportunities such as selling used products into new markets. All of which are services that Panalpina provides as part of its wider LMS offering.

“The transition from take-make-dispose supply chains to the circular supply chains of the future is happening faster than we expected,” says Wilson.

Customers increasingly ask for Panalpina’s help to identify and exploit commercial opportunities in their after-market supply chain, whether this is about increasing their after-sales revenues, reducing operating costs or freeing up inventory, or a combination of all three.

Panalpina helps its customers take advantage of the transition to circular supply chains in multiple industries across the globe; remanufacturing mobile phones in Dubai, repairing telecoms equipment in Mexico, repacking fashion products in the US and screening and testing optical equipment in Germany.

Journey to the circular supply chain

A broader view of the opportunities that circular supply chains offer can be found in a recent white paper produced at the Panalpina Centre for Manufacturing and Logistics Research at Cardiff University.

Authored by Wilson and titled Journey to the circular supply chain, the industry report on the future of manufacturing supply chains and logistics has been endorsed by the European Remanufacturing Council.

The European Remanufacturing Council, of which Panalpina is a leading member, was recently recognized at the Davos World Economic Forum as a best practice example of industry and academic collaboration. The Council supports companies and governments in making the transition to circular supply chains.

Environmental and societal benefits to be gained as well

Although the transition to circular supply chains opens up enormous commercial opportunities, there are environmental and societal benefits to be gained as well. For World Remanufacturing Day, Panalpina headquarters supported a local charity by collecting, fixing and repurposing used laptops, tablets and phones from Panalpina employees that will be donated to a school in Africa.

“We want to show that as individuals as well as a company, Panalpina is committed to making the most of the commercial and environmental opportunities in the transition to circular supply chains,” says Andy Lahy, global head of Logistics Strategy and Innovation at Panalpina, who is behind the initiative.

The reuse of products must not always be as complicated as rocket science. Every contribution counts to make the circular economy take flight.

Service center for air freight and ocean freight queriesAdvice and support provided on all issues relating to customs and freight documents

DHL Global Forwarding has launched a helpdesk in Berlin that is custom-tailored to the needs of start-ups. The logistics professionals working at the DHL Start-Up Helpdesk assist dynamic start-up entrepreneurs and expanding start-up companies in the areas of logistics and supply chain development to enable them to achieve success both in and beyond Germany.

"Our customer base of start-ups with global operations is growing rapidly at our branch in Berlin. Understandably, they have a greater need for advice and services, particularly in the initial stages," explains Joachim Hermansky, Vice President Customer Service Germany at DHL Global Forwarding. "That is precisely why we trained up a young team that acts as a link between companies going global and traditional handling departments. They understand both worlds and that allows them to provide swift and flexible support."

The Start-Up Helpdesk at DHL Global Forwarding helps young companies enter the international business market. The digital world and e-commerce accelerate and simplify cross-border expansion for entrepreneurs. However, what requirements need to be met if products and goods are to be offered in other countries, and perhaps even outside the European Union, with immediate effect? The same applies to the procurement of products or materials and components for their own business when it is essential to deliver or receive the goods on time, and with the correct shipping and customs documents. That is where the Start-Up Helpdesk's work begins. Have the goods been properly packaged? What transport mode is the best to be used? What customs requirements need to be met for imports and exports? What shipping documents need to be furnished? Have the goods been properly insured? These and many other questions suddenly become relevant in order to successfully develop and manage a business's supply chains. The start-up team at DHL Global Forwarding is the right port of call for all these issues. DHL's global network makes it possible to find the right transport services and solutions in no time and, if necessary, to contact experts able to deal with issues relating to all aspects of customs, regulations and transport routes.